Retired at 27!

105 Replies

Congratulations.  I wish I had thought about the possibility of retiring before 30.  At age 27 I was attending law school, working 3 jobs and raising 2 kids that I did not health insurance for.  I had invested in buying a piece of land and a trailer house.  I rented those out after I moved away from college and got a job.  When I sold that p[lace several years after moving I was able to take that check and pay off the mortgage on the house I bought in the next town.  I wish I had bought 20 houses back then and I would be retired now.  Live and learn.

That's great that you have steady income with more time to do the things you want to do. 

Nice! Any advice to those who are thinking/dreaming about retiring earlier?

@Al Wilson and @Greg H. I understand your concerns, but my husband and I both enjoy really physically strenuous activities like snowboarding, rock climbing, and acro yoga, that we just wouldn't be able to enjoy to the fullest if we didn't have time to pursue them until we were older. Even if we have to go back to work later in life, I'm excited to have to opportunity to do what I love while my body is still young enough to handle the beating :)

I've actually been "retired" since September, my husband just had his last day.  My typical day looks like skiing or snowboarding in the morning, then going on a jog or cross country ski with my dog. In the afternoon I'm normally doing laundry and cleaning up for our next Airbnb guest, and then doing some studying/reading/deal analyzing.  We've also been doing a lot of traveling, both road tripping and internationally. All things that would be really difficult for us to do with full time jobs. (At least for more than two weeks a year)

Cool. Try not to break any big bones. 

@Dennis P. right now I'd have to say to really spend time looking at your expenses and what's important to you. We didn't need much to make the numbers work because we keep our expenses really low by living somewhere small, driving older cars, etc. I know for a lot of people having a big house and a Tesla is really important, but that's not what's important to me. 

But also were still young and have a lot to learn, so maybe it's better to check back with us in a couple of years and see how successful we actually are !

@Shelby CookThat is an exciting story! Congrats! We used to rent out the extra 2 bedrooms in our home, and it covered half the mortgage. Good stuff! We recently decided to stop because we were growing weary of sharing the house with others.

Anyway, how to you handle your income tax? Do you simply set aside some of your income so you have a savings ready to pay taxes each year? Or do it another way via estimated taxes?

Hi @Nicole W. so far we have just been very meticulous in our bookkeeping and savings and have a CPA that we love and trust. Since we've had w2 jobs most of our taxes have been paid in payroll already the last few years, so we're just keeping a close eye on it and might reassess and do the quarterly payments in the future if we need to. 

That is so exciting.  I recently put in my notice to my employer.  As of April 1st I will be be a full blown entrepreneur just income from my rentals and business.  Hopefully a ton more time for family and some for fishing as well.  Keeping my fingers crossed.  Best of luck to you guys.

Originally posted by @Shelby Pracht :

@Dennis P.right now I'd have to say to really spend time looking at your expenses and what's important to you. We didn't need much to make the numbers work because we keep our expenses really low by living somewhere small, driving older cars, etc. I know for a lot of people having a big house and a Tesla is really important, but that's not what's important to me. 

But also were still young and have a lot to learn, so maybe it's better to check back with us in a couple of years and see how successful we actually are !

 Thanks, Shelby! I'm already into frugal living. Additionally to what you have said, I use cashback cards only and even some churning.  As far as buying properties and renting them out, any words of wisdom?

Way to go! You are legendarily early retirees!

#Legend #BiggerPockets

Simply incredible. Hope I can get to that point some day...

Congrats!!!

I am 28 and my husband just turned 32; your story is a MAJOR inspiration for us! It can be done! Congratulations and I hope to soon follow in your footsteps!

Very inspirational, I'm in my early stages of getting into real estate, what you've accomplished is the epitome of "Success" to me. Congratz!

Thanks so much for all your encouragement guys! I am so grateful for the support!

@Dillon Bell yeah, we definitely love Mammoth :) Hit me up if you ever make it up here!

@Dennis P. As far as purchasing and renting, I don't know if my words would be wisdom or not, but we've definitely paid a premium to invest in the market that we really know and understand here in California. I'm excited about moving into Birmingham where our dollar is going to go a lot further, but having the majority of our income right now coming from around the corner is really reassuring. I know it's not good for scaling a business or anything, but we are friends with our tenants and interact pretty regularly, we know the market value of the rent here, and never have to worry about tenants trashing the place. It made the transition into investing a little less scary in my opinion. My only other tip that has been a huge help for us is the using the Fannie Mae "First Look" program and financing. Because our first property was also our primary residence, we were able to get an offer in before other investors and also only put down 7% with no PMI. That made a HUGE difference.

do u guys plan on having kids?  not sure the cost in cali but daycare in Michigan is 1k+ per month.  we pay 2k for 2 kids with a discount.  also saving for their college would be a worry for me. 

just a thought.  we have 25, cashflow like crazy and I still feel like I need more. 

Kids are definitely not in the plan right now, @George P.

I'm sure that would change our investment strategy drastically, not just to pay for expenses for kids, but just wanting to have an even larger emergency fund, savings for college like you said, etc. I could understand why you would continue to want more properties to be able to provide for them even better! We really enjoy getting to love on all our friends' kiddos, but I definitely don't think our lifestyle would be conducive to parenthood, haha.

Congrats on the CF investments! How do you live off $1500/month?!  My food bill per month is higher than that as a single guy!

Wow @Mark Allen ! I much prefer to cook than eat out, we normally spend about $200/month on food! We also live in a town that's only 4 square miles, so we have only one car and drive it really rarely, so we spend very little on gas as well. 

Shelby Cook Congrats !

Originally posted by @Shelby Pracht :

Thanks so much for all your encouragement guys! I am so grateful for the support!

@Dillon Bell yeah, we definitely love Mammoth :) Hit me up if you ever make it up here!

@Dennis P.As far as purchasing and renting, I don't know if my words would be wisdom or not, but we've definitely paid a premium to invest in the market that we really know and understand here in California. I'm excited about moving into Birmingham where our dollar is going to go a lot further, but having the majority of our income right now coming from around the corner is really reassuring. I know it's not good for scaling a business or anything, but we are friends with our tenants and interact pretty regularly, we know the market value of the rent here, and never have to worry about tenants trashing the place. It made the transition into investing a little less scary in my opinion. My only other tip that has been a huge help for us is the using the Fannie Mae "First Look" program and financing. Because our first property was also our primary residence, we were able to get an offer in before other investors and also only put down 7% with no PMI. That made a HUGE difference.

 Thank you!

That has to feel great, congratulations on breaking free! It's post like this that help keep me motivated. Thanks for the inspiration!

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